As previously reported, Needham upgraded Disney (DIS) to Buy from Hold with a $120 price target based on expectations for “strong” 23% FY24 EPS growth, driven by additional cost savings, direct-to-consumer streaming breakeven by Q4 with “double-digit” margins at maturity and 5.5M-6M new subs from Charter (CHTR) in fiscal Q2. The firm also cites the new ESPN Sports joint venture with Fox (FOXA) and Warnger (WBD), the $1.5B investment in Epic Games, Parks capex devoted to “incremental capacity,” which equates to added revenue, the exclusive Taylor Swift concert rights on Disney+, a 50% higher dividend and greater than $3B of share repurchases in 2024 in contending that “The Magic’s Back.”
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